Reeves

Chancellor says package offered by Liz Truss’s government was unaffordable and any future help will be targetedRachel Reeves has ruled out universal support to deal with any future rise in energy bills, saying any government help would be targeted, and criticised the support offered by Liz Truss’s government as unaffordable and irresponsible.The chancellor also said she would review the planned fuel duty rise in September, but she did not commit to delaying or postponing it. Continue reading...

Energy minister Michael Shanks reassures drivers ahead of chancellor’s statement to MPsGood morning. At lunchtime Rachel Reeves, the chancellor, will give a statement to MPs that will cover what the government is doing, and (more tentatively) might do, in response to the soaring global energy prices caused by the Iran war. After Russia invaded Ukraine in 2022, also creating a global energy shortage, the Conservative government ended up spending £40bn supporting families and firms with energy bills over the following winter. Reeves’s problem is that she has not got £40bn spare. With spring upon us, and people starting to turn down their central heating, the issue may not seem particularly pressing in many households (although heating oil and petrol prices are already soaring.) But, by the end of this year, this could be the sort of colossal economic crisis that gets remembered for half a century.As Chris Mason explains in a good preview, Reeves is expected to cover three points. She is expected to confirm that the government wants to give the Competition and Markets Authority new powers to deal with any potention profiteering by oil companies. She will confirm that the government wants to go “further and faster to secure the next generation of nuclear power and to reclaim Britain’s place as a leading nuclear nation” (as the Treasury puts it in its overnight preview).[Drivers] should do everything as absolutely normal because there is no shortage of fuel anywhere in the country at the moment. We monitor this every single day, I look at the numbers personally. There’s no issue at all with that …People should go about their business as normal. That’s what the RAC and the AA have said. It’s really important people do that. There’s no shortage of fuel and everything is working as normal.Look genuinely, people shouldn’t change their behaviour or their habits in the slightest. Continue reading...

Offer to reform taxes, tackle ‘rip-off Britain’ and overhaul fiscal rules could tempt exasperated Labour supportersZack Polanski says Greens would ditch GDP targets and focus on wellbeing insteadThe venue for Zack Polanski’s economic speech on Wednesday – a sunny north London garden centre – could hardly have been more different to the sombre City backdrop for Rachel Reeves’s Mais lecture on Tuesday.The chancellor was, as it happens, the last politician to give a major economic speech at the New Economics Foundation (NEF), the leftwing thinktank that invited the Green party leader, Polanski, to set out his stall as part of its 40th anniversary celebrations. Back in 2018 it hosted the speech in which, as a backbencher, Reeves called for an “everyday economics” that would prioritise the needs of low-paid workers. Continue reading...

Chancellor seeks to tackle centralised and ‘geographically unequal’ country in ‘a genuine break with the past’Business live – latest updatesRachel Reeves has announced that the Treasury will draw up plans to give regional leaders a share of national tax revenues as part of a radical plan to rebalance the economy of England.Setting out her intention of creating “investment-led growth”, the chancellor promised “a genuine break with the past” that would shift spending power away from Westminster. Continue reading...

Rolling coverage of the latest economic and financial newsThe number of people in England and Wales falling into insolvency has jumped.There were 11,609 individual insolvencies registered in England and Wales in February, the Insolvency Service has reported this morning. This was 18% higher than in February 2025 and 6% higher than in January 2026.The individual insolvencies consisted of 768 bankruptcies, 4,210 debt relief orders (DROs) and 6,631 individual voluntary arrangements (IVAs). The number of DROs in February 2026 was a record high in the monthly time series going back to their introduction in 2009, exceeding the previous high of 4,185 in August 2025.The number of IVAs was higher than both January 2026 and the 2025 monthly average. Bankruptcies were 25% higher than in February 2025, although numbers were affected by the clearing of a backlog following the Insolvency Service moving to a new case management system.Average 2-year fix has risen from 4.83% at the start of March to 5.28% today. It’s highest since April 2025.Average 5-year fix has risen from 4.95% at the start of March to 5.32% today. It’s highest since February 2025.“War in the Middle East has added almost £800 to a typical annual mortgage bill in just two weeks, which will be unwelcome news for anyone currently seeking a fixed rate deal.“The average two-year fixed rate has jumped from 4.83% at the start of March to 5.28% today – its highest level since April 2025. The average five-year fix has risen from 4.95% to 5.32%, now at its highest since February 2025. For a borrower with a £250,000 mortgage over 25 years, that equates to paying £788 more per year on a two-year fix, or £651 more on a five-year deal compared to just a fortnight ago. Continue reading...